It's all about the money: NASCAR purse distributions don't always make sense—a team can take home more cash than one that finishes above it—but the system for slicing the payoff pie is anything but arbitrary

Sporting News, The, May 26, 2003 by Lee Spencer

To the victor go the spoils, right?

Then why does the second-place finisher in a NASCAR race sometimes take home more money than the winner?

One of the frequently asked questions among fans of Winston Cup racing involves the seemingly illogical distribution of the purses. Why isn't there an orderly, incremental payout at the end of a race?

The distribution system, on the surface, defies comprehension. But there is a money trail; there is an explanation behind the payouts on race day.

For instance, look at the results from May 3 at Richmond, where Joe Nemechek received $159,375 for the win--just $1,617 more than second-place finisher Bobby Labonte. The primary reason the difference was so small is that NASCAR has bonus programs based on previous performances.

Distribution of prize money changed considerably beginning with the 2001 season, when the television deals with NBC and Fox took effect. NASCAR's board of directors determined how the $2.6 billion contract would be divided among NASCAR, the tracks and the teams.

NASCAR receives 10 percent of the TV money, the tracks 65 percent and the teams 25 percent. That 25 percent is divided into two programs:

* Television Awards, which, according to race entry forms, are "derived from telecast rights fees and Net Ancillary Rights Income." That money is divided among the 43 teams in each race according to finishing order. At Richmond, the TV Awards totaled $1,242,162.

* The Winston Cup Series Car/Championship Owner Program, which rewards the top 19 teams based on their performance over the last three years--the A list. This is, in effect, guaranteed money. When any of those 19 teams enters a race, it gets a share of the $16.2 million Championship Owner pie, regardless of its position in the current points standings.

Jeff Gordon's Hendrick Motorsports team tops the list and provides an example.

NASCAR's competition department takes 100 percent of Gordon's points from 2002 (4,607), 75 percent from 2001 (3,834) and 50 percent from 2000 (2,181). It adds 500 bonus points for each championship ever won by the team, which gives Gordon 2,000 points.

That total puts Gordon's team atop the rankings. Only two drivers from an organization can participate in this program.

"I think it is good because it awards guys who have been here the longest and achieved the most," says Don Miller, co-owner of A list Penske South. "Eventually, it will have to be restructured to feed teams that are further down.... This is the beginning toward the next step, which is franchising."

An additional segment of the Championship Owner program, the "20-24" awards, benefits the next nine teams in the Championship Owner rankings. The top five finishers in each race among these nine get the 20th through 24th-place shares in the Championship Owner rankings (20th, $17,000; 21st, $15,000; 22nd, $13,000; 23rd, $10,500; 24th, $8,389). Is your head spinning yet?

"I think the program is done fairly except the bonus paid to past champions, which carries a lot of weight considering we have to race for our money each week," says Jasper Motorsports' Doug Bawel, an owner of Dave Blaney's car. "But I do give NASCAR credit for expanding the program to include additional teams."

There are a variety of other awards that can be added to the race purse.

* The Winner's Circle Program, funded by the tracks, rewards the top 10 race winners from the previous season, with a limit of two cars per organization. Matt Kenseth led with five victories in 2002, and he receives $12,200 for every race he runs this season.

* The owners who finished in the top 30 in points in 2002 qualify for Plan 1 Awards, which pay each $8,000 per race ($288,000 a season).

* For the first 12 races, a provision of the Plan 1 Awards covers owners who finished in the top 40 in 2002 points who aren't eligible for Winner's Circle money. After race No. 12, it covers teams in the current top 40 not eligible for Winner's Circle money. The highest finisher who is eligible is paid $6,000; the money drops to $2,500 for the 19th-highest.

* There is an additional $17,648,000 in manufacturers' point fund awards, which are manufacturer and sponsor funds distributed at the end of the season. They include the Bud Pole Award and the Raybestos Rookie of the Year Award. There also are 27 contingency awards programs. That's money awarded according to performance, but a car or driver uniform must carry the sponsor's decal for the team to be eligible.

So by the end of race day, the spoils in NASCAR do find their way to the victor--and many others. They just don't take the most direct path.

A day at the races

Income for the top two finishers May 3 at Richmond:

1. Joe Nemechek. Total winnings: $159,375. Track award: $50,975. TV award: $55,850. Plan 1c: $6,000. USG Driver of the Race: $5,000. Outback Steakhouse Bloomin' Favorite Driver of the Race: $5,000. Goodyear Gatorback Fastest Lap: $5,000. Infogrames Pit Strategy: $4,300. EA Sports Move of the Race: $4,300. Contingency awards: 3M, $1,000; 76 Racing Gasoline, $1,000; Autometer, $1,500; Clevite, $1,250; Competition Cams, $2,100; Edelbrock, $1,200; Holley, $1,500; MAC Tools, $2,800; Mechanix Wear, $1,750; Moog, $1,500; Raybestos, $2,000, Simpson, $3,000; Wix Filters, $2,350.